Online Reporter
Nqobile Bhebhe, [email protected]
BULAWAYO could be on the cusp of one of the biggest infrastructure investments in its history after the City Council received a US$500 million to US$1 billion Public-Private Partnership (PPP) proposal to rehabilitate, modernise and operate its ageing water supply system.
The massive project has the potential to transform service delivery, unlock economic growth and strengthen the city’s long-term investment appeal.
Helcraw Water (Private) Limited Zimbabwe has submitted an Expression of Interest (EOI) to undertake the project under a 15 to 25-year Build-Operate-Transfer (BOT) agreement, an arrangement expected to improve water supply reliability, reduce losses and bolster water security without requiring significant upfront capital from the local authority.
Submitted on June 5, the proposal seeks to harness private sector financing, technical expertise and modern technology to tackle Bulawayo’s long-standing water infrastructure challenges while supporting the city’s long-term development agenda.
According to the latest council General Purposes Committee report, Helcraw Water, a local specialist water infrastructure development and management company, has indicated access to substantial funding required to undertake the ambitious infrastructure programme.
“The proponent indicated availability of up to US$500 million-US$1 billion for project implementation. The Public-Private Partnership (PPP) would mobilise private investment and advanced technologies to upgrade, finance, and operate the system, eventually transferring the fully rehabilitated assets back to the municipality upon concession completion,” reads part of the report.
Council has said the proposed investment would ultimately be determined through feasibility studies, engineering assessments and stakeholder consultations.
“Helcraw Water estimated the total project investment to be in the range of US$500 million to US$1 billion, subject to the outcome of detailed feasibility studies, engineering assessments, and stakeholder consultations,” said the council.
“Helcraw Water proposed a concession period of 15 to 25 years under the Build-Operate-Transfer (BOT) model and proposed that the concession period shall be determined based on the final project scope, financing structure, investment recovery requirements, and mutually agreed commercial terms between the parties.”
The project seeks to comprehensively overhaul Bulawayo’s water infrastructure value chain, covering water production, treatment, distribution and revenue management systems.
Among the key components is the installation of smart water metering infrastructure, refurbishment and upgrading of water distribution networks, rehabilitation and upgrading of water treatment plants, as well as refurbishment and upgrading of bulk water conveyance infrastructure.
If implemented, the project would provide a major boost to Bulawayo’s efforts to improve water service delivery amid growing demand and ageing infrastructure challenges.
The proposed modernisation programme is expected to improve the reliability and availability of potable water supplies, enhance operational efficiency at treatment plants and across distribution systems, and significantly reduce non-revenue water, which remains a major challenge for many local authorities.
The initiative is also expected to strengthen revenue collection and improve the financial sustainability of the city’s water utility through the deployment of smart technologies and improved system management.
According to the proposal, residents and businesses stand to benefit from improved water quality, enhanced regulatory compliance, lower operational and maintenance costs and a longer lifespan for critical infrastructure assets.
The project is further expected to increase the resilience of Bulawayo’s water supply system, helping the city better manage future water supply challenges while supporting industrial growth, commercial activity and urban expansion.
A major attraction of the proposed arrangement is that it would allow the city to access significant private sector funding and technical expertise without committing substantial upfront capital expenditure.
Under the proposed BOT structure, Helcraw Water and the local authority would jointly undertake feasibility studies and detailed engineering designs before project implementation.
The company would then assume responsibility for mobilising financing, procurement, construction, rehabilitation, commissioning, operation and maintenance of the upgraded infrastructure.
Funding would be sourced through a combination of equity contributions, debt financing, development finance institutions and strategic investment partners.
During the concession period, Helcraw Water would operate and maintain the infrastructure, recovering its investment through agreed commercial arrangements and efficiency gains.
At the end of the concession period, all rehabilitated and upgraded assets would be transferred back to the council in good operating condition at no additional cost.
Helcraw Water managing director Mr Zodeck Muchoko said the company was committed to partnering with the city to deliver a transformative water infrastructure programme.
“Helcraw Water is committed to working collaboratively with the City of Bulawayo to develop a bankable, sustainable, and transformative water infrastructure programme that aligns with the City’s long-term strategic objectives,” Mr Muchoko wrote.
The company said it was prepared to undertake preliminary technical, financial, environmental and commercial assessments in consultation with the city to determine the most suitable implementation framework and concession structure.
It added that the initiative presents a unique opportunity to modernise Bulawayo’s water infrastructure, improve service delivery and secure the city’s long-term water future through sustainable private sector participation.
The proposal received positive remarks during deliberations by the General Purpose Committee, with Ward 10 councillor Khalazani Ndlovu noting that the company had demonstrated success elsewhere.
Cllr Ndlovu said that during a look-and-learn visit to Karoi, the company had undertaken a successful project that was progressing well.
Deputy Mayor, Councillor Edwin Ndlovu, also indicated that residents of Karoi were satisfied with the project outcomes.
He further explained that the rehabilitation, upgrade, modernisation and operation of Bulawayo’s water infrastructure formed part of mitigation measures requested by the Minister of Local Government and Public Works, demonstrating the strategic importance of strengthening the city’s water delivery systems.
Town Clerk Mr Christopher Dube advised that management was seeking authority to engage with Helcraw Water Private Limited and advised that discussions had already started and council needed to adopt a pre-feasibility study, indicating how best it could work with Helcraw Water Private Limited and then submit it further to Zimbabwe Investment Development Authority (ZIDA).
